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The logo of Alimentation Couche-Tard Inc. in Laval, Quebec September 6, 2006.
The logo of Alimentation Couche-Tard Inc. in Laval, Quebec September 6, 2006.
(CHRISTINNE MUSCHI/REUTERS/CHRISTINNE MUSCHI/REUTERS)

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Latest hot seller at Couche-Tard: expensive bonds

Fund managers have just added a dollop of froth to the Canadian bond market.

Sources in the fixed income market report that Alimentation Couche-Tard today sold out a $1-billion bond offering, which it is using to finance its purchase of Statoil’s convenience store network in northern Europe, amazingly at slightly better yields than Sobey’s Inc. bonds enjoys. The company sold $300-million worth of five-year bonds paying 2.86 per cent, $450-million in seven-year paper paying 3.319 per cent and $250-million in 10-year bonds paying 3.899 per cent. Those spreads were 140, 165 and 195 basis points, respectively, above comparable government debt.